Questions
Target is the publicly traded company I chose. Review its most recent Annual Report. Use the...
Target is the publicly traded company I chose. Review its most recent Annual Report.
Use the Income Statement and Balance Sheet to determine the changes in:
assets, liabilities, and equity
total revenue and net income
Briefly describe the change from the current and prior years in each of these key areas and determine if the changes would be positive or negative from an investor / stockholder’s view.
In: Finance
Each small square in the grid for this graph has one side equal to 1 pound of bolts and one side equal to 1 dollar per pound.
Jack Hardware sold 6 pounds of bolts yesterday at a price of $3,.00 per pound. This point is represented by the black plus symbol on the diagram below, which plots the price of bolts (measured in dollars, per pound) and the quantity sold (measured in pounds).
Each small square in the grid for this graph has one side equal to 1 pound of bolts and one side equal to 1 dollar per pound. The area of one small square is therefore _______ .
There are _______ small squares in the purple shaded rectangle
On this graph, the area of the purple rectangle corresponds to:
Jack Hardware's revenue from selling bolts, measured in dollars
The price of the bolts, measured in dollars per pound
The number of bolts that Jack Hardware sold, measured in pounds
None of these-the area has no meaning
Now suppose Jack Hardware lowers its price to $2.00 per pound of boits. As a result, it now sells 9 pounds of bolts.
Use the blue rectangle to draw the area that corresponds to the new price and quantity
Did lowering the price of bolts increase Jack Hardware's revenue?
Yes
No
In: Economics
King Hardware sold 7 pounds of bolts yesterday at a price of $5,.00 per pound.
King Hardware sold 7 pounds of bolts yesterday at a price of $5,.00 per pound. This point is represented by the black plus symbol on the diagram below, which plots he price of bolts (measured in dollars, per pound) and the quantity sold (measured in pounds).
Each small square in the grid for this graph has one side equal to 1 pound of bolts and one side equal to 1 dollar per pound. The area of one small square is therefore _______ .
There are _______ small squares in the purple shaded rectangle
On this graph, the area of the purple rectangle corresponds to:
King Hardware's revenue from selling bolts, measured in dollars
The price of the bolts, measured in dollars per pound
The number of bolts that King Hardware sold, measured in pounds
None of these-the area has no meaning
Now suppose Jack Hardware lowers its price to $6.00 per pound of bolts. As a result, it now sells 5 pounds of bolts.
Use the blue rectangle to draw the area that corresponds to the new price and quantity
Did lowering the price of bolts increase King Hardware's revenue?
In: Economics
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | |
| Budgeted Unit Sales | 32,000 | 52,000 | 26,000 | 52,000 |
Each T-shirt is expected to sell for $20.
The purchasing manager buys the T-shirts for $8 each.
The company needs to have enough T-shirts on hand at the end of each quarter to fill 30 percent of the next quarter’s sales demand.
Selling and administrative expenses are budgeted at $64,000 per quarter plus 16 percent of total sales revenue.
Required:
.1. Determine budgeted sales revenue for each quarter.
2. Determine budgeted cost of merchandise purchased for each quarter.
3. Determine budgeted cost of good sold for each quarter.
4. Determine selling and administrative expenses for each quarter.
5. Complete the budgeted income statement for each quarter.
In: Accounting
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...
| Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: |
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | ||||
| Budgeted Unit Sales | 40,000 | 60,000 | 30,000 | 60,000 | |||
| • | Each T-shirt is expected to sell for $15. |
| • | The purchasing manager buys the T-shirts for $6 each. |
| • | The company needs to have enough T-shirts on hand at the end of each quarter to fill 25 percent of the next quarter’s sales demand. |
| • | Selling and administrative expenses are budgeted at $80,000 per quarter plus 10 percent of total sales revenue. |
| Required: | |
| 1. | Determine budgeted sales revenue for each quarter. |
| 2. | Determine budgeted cost of merchandise purchased for each quarter. |
| 3. | Determine budgeted cost of good sold for each quarter. |
| 4. | Determine selling and administrative expenses for each quarter. |
| 5. | Complete the budgeted income statement for each quarter. |
In: Accounting
You have been asked to value Delta Corp and have come up with the following inputs:...
You have been asked to value Delta Corp and have come up with the following inputs:
|
Delta 2019 |
|
|
Revenues |
$1,500 |
|
COGS (w/o Depreciation) as % of Revenue |
50% |
|
Depreciation |
$40.00 |
|
Tax Rate |
35.00% |
|
Capital Expenditure |
$60.00 |
|
Working Capital (as % of Revenue) |
30.00% |
|
Beta during the high growth period |
1.50 |
|
Expected Growth Rate in Revenues &EBIT during the high growth period |
30.00% |
|
Expected Period of High Growth |
3 years |
|
Growth rate After High-Growth Period |
5.00% |
|
Beta After High-Growth Period |
1.20 |
Capital expenditure will be offset by depreciation after the high-growth period. No debt outstanding. The Treasury bond rate is 8% and the market risk premium (MRP) is 5.5%.
Required:
1) What is your estimate to the appropriate discount rates during the high-growth period and stable growth period?
2) What is your estimate to the terminal value (TV) for the firm (at the end of the third year)?
3) What is your estimate to the value of the firm, using the FCFF model?
In: Finance
In order to protect the U.S. steel industry, the United States has levied a tariff on imports of foreign steel from many nations.
In order to protect the U.S. steel industry, the United States has levied a tariff on imports of foreign steel from many nations. Which of the following effects would an import tariff on steel be likely to have? (Check all that apply.)
Quantity of steel imported would go down | |
Prices paid by U.S. steel buyers would go up | |
Prices received by U.S. steel producers would go down | |
U.S. government revenue would go down | |
Income to foreign exporters of steel to the USA would go down |
To protect U.S. tart cherry producers against low-priced foreign competition, the United States is considering a tariff. Which of the following effects would an import tariff on tart cherries be likely to have? (Check all that apply.)
Income to foreign producers of tart cherry would go down | |
Prices received by domestic producers would go up | |
Prices paid by consumers would go up | |
Government revenue would be unchanged | |
Quantity imported would go up |
In: Economics
John the plumber has the following weekly demand for repairs by his business: Q = 2,000...
- John the plumber has the following weekly demand for repairs by his business:
Q = 2,000 – 10(P)
Q = quantity of repairs demanded by customers per week.
P = average price per repair.
John chooses the price to charge to his customers (cause). The result (effect) will be the total number of repairs his customers want per week.
A. Draw the demand curve faced by John the plumber. Numerically label its two end points.
B. Create the table of numbers: P Q TR MR
P = average price per repair. You may skip numbers for price changes by $10 at a time.
TR = Total Revenue = PQ
MR = Marginal Revenue = (change in TR)/(change in Q)
Draw the MR curve on the diagram, as well/
C. The MC (Marginal Cost) to John per repair is $20. What price (P) will be charged per repair, and how many repairs (Q) per week? Show it on your diagram with solved numbers.
D. Label the Consumer Surplus on your diagram. Define Consumer Surplus, as well.
In: Economics
8. Price discrimination can occur If: a.) producers are price takers b.) there are many firms...
8. Price discrimination can occur If:
a.) producers are price takers
b.) there are many firms in the industry, all producing the same
identical good.
c.) the market structure is monopolistic competition.
d.) all consumers have the same willingness to pay for the
good.
10. The Go Sports Company is a profit-maximizing firm with a
monopoly in the production of school team pennants. The firm sells
its pennants for $10 each. We can conclude that Go Sport is
producing a level of output at which:
a.) average total cost is greater than $10.
b.) average total cost equals $10.
c.) marginal revenue equals $10.
d.) marginal cost equals marginal revenue.
14. The demand curve for monopoly is:
a.) the entire MR curve.
b.) the MR curve above the AVC curve.
c.) above the MR curve.
d.) the MR curve above the horizontal axis.
15. Price discrimination leads to a __ price for consumers with a
___ demand.
a.) higher; less elastic
b.) higher; perfectly elastic
c.) higher; more elastic
d.) lower; less elastic
In: Economics
Suppose that Firm A and Firm B are two of the largest producers of a special pool-cleaning robot.
Suppose that Firm A and Firm B are two of the largest producers of a special pool-cleaning robot. Suppose that the marginal cost of making such a robot is constant at $1,000 per unit, and there is no start-up cost. The demand for the robot is described by the following schedule.
Price (in 000s) | Quantity (in 000s) | TR (in 000s) | MR (in 000s) | TC (in 000s) | MC (in 000s) | Profit (in 000s) |
8 | 6 | |||||
7 | 7 | |||||
6 | 8 | |||||
5 | 9 | |||||
4 | 10 | |||||
3 | 11 | |||||
2 | 12 | |||||
1 | 13 |
a. Complete the columns for total revenue, marginal revenue, total cost, marginal cost, and profit.
b. If the market for the robots was perfectly competitive, what would the price and quantity be?
c. If there were only one supplier of robots, what would the price and quantity be?
d. If two firms formed a cartel, what would be the price and quantity? If two firms split the market evenly, what would be Firm A’s production and profit?
e. What would happen to Firm A’s profit if it increased its production by 1,000 while Firm B stuck to the cartel agreement?
In: Economics